By: Barbara Zigah
The U.S. Dollar saw gains in Tokyo trading following the news that the long-serving leader of North Korea, Kim Jong-il, has died, which lent support to the safe-haven currency. As reported at 12:45 p.m., the U.S. Dollar was trading against the Japanese Yen at 77.99 Yen, retreating from the spike of 78.18 Yen struck after the news. The Australian Dollar was lower against the U.S. Dollar, trading at $0.9911 from a session high of $0.9922. The Aussie lost nearly 2% of its value against the U.S. Dollar over the past week, but support is seen at around $0.9862, and resistance at $1.0052. One investment strategist said that there is sure to be a great deal of uncertainty now, as Asian countries assess the impact and implications of Jong-il’s death.
The Euro was also lower against the U.S. Dollar, as the threat of a credit downgrade continues to weigh heavily. Traders are eager to learn if S&P will follow through on its threat to downgrade France’s AAA credit rating, with some believing a loss of two notches is possible. The Euro was trading lower against the U.S. Dollar, most recently at $1.3003, down from an intra-session high of $1.3049.